GCCI urges Centre to continue interest subsidy scheme for exporters

Ahmedabad, Aug 13 (UNI) President of Gujarat Chamber of Commerce and Industry (GCCI) Rupesh C Shah has urged the Central government to continue the interest subsidy benefit facility to exporters.

GCCI President said the withdrawal of interest subsidy benefits will add to the costs of the exporters, who are already reeling under tremendous pressure to remain competitive in the international market.

He said exporters earn the most precious foreign exchange for the nation. The rupee which was depreciating has again started appreciating against the US dollar, considering this the total subsidy given to the exporters is negligible.

Mr Shah said according to a circular issued on August one, RBI said the Government had decided to discontinue the interest subsidy on rupee export credit from September 30, 2008. Earlier, following the government advice, the RBI had extended the subsidy scheme up to March 2009. Under the scheme, exporters of specified items were eligible for four per cent interest subsidy on rupee export credit.